The latter of the two being the actual, real hotel in Los Angeles where the exterior shots were filmed. If anything, he leans into both, daring you to look into the abyss with him as he interrogates his own dark side and banishes himself to the underworld.
Well, why should they? That being said, look at the evidence below and decide for yourself. If masturbation is self improvement, and if Marla, Tyler and Jack are all the same person, then Jack is masturbating.
This is a deliberate connection the director was trying to make. A story of a woman who puts on a piece of clothing a shoe and undergoes a transformation.
The number of times I have had to explain this to grown adults is absolutely heart breaking. Why would testicles need to be removed? But he has been ill-served by a screenplay that isn't curious about what his life would really be like. This makes her choice of words make much more sense.
Did you notice anything interesting about the screenshot above? Or if it's for adults, then it shouldn't have been constructed as a sitcom. Everything we saw Tyler do, Jack was actually doing or imagining himself watching. He developed bitch tits because his testosterone was too high and his body upped the estrogen.